Veg oil imports decline on higher domestic supply

After three months of rise, vegetable oil import plunged 23.2 per cent in August, due to excessive availability from domestic sources.

Data compiled by the apex trade body, Solvent Extractors’ Association of India (SEA), show that an overall import of vegetable oil in the country slumped to 81,7440 tonnes in August, as compared to 1,065,641 tonnes in the corresponding month of the previous year. However, the decline stood at 10.5 per cent when compared with the previous month.

Overall vegetable oil imports between November and August also recorded a decline of 7.9 per cent at 6,860,843 tonnes, as compared to 7,447,955 tonnes during the same period of last year. SEA clarified that vegetable oil import in the second quarter of the oil year was lower due to higher crushing of oilseeds and production of oil. Import of vegetable oils in the third quarter increased by 15.4 per cent.

The decline was in sharp contrast with the general trend across the oil year (November - October). Generally, vegetable oil imports decline in the first half ending April, due to revival in domestic rabi oilseed crushing. On the other hand, import rises in the second half due to non-availability of oilseed for crushing, in the domestic market. April to October is generally considered a lean season for the domestic oilseed crushing industry, in which refining activity increases with imported crude vegetable oil.

Current stock of edible oils as on September 1 at various ports is estimated at 570,000 tonnes (crude palm oil at 330,000 tonnes, refined, bleached and diodized (RBD) palmolein at 90,000 tonnes, degummed soybean oil at 80,000 tonnes and crude sunflower oil at 70,000 tonnes) and about 820,000 tonnes in the pipeline. The total stock, was down by 170,000 tonnes to 1,390,000 tonnes, mainly due to lower domestic production as well as import during the month.

During November - August, import of RBD palmolein was down by 17 per cent at 818,640 tonnes, as compared to 987,959 tonnes during the same period of last year. The share of refined oil was 12 per cent, while crude oil stood at 88 per cent and reported at 5,796,151 tonnes as compared to 6,112,581 tonnes during corresponding period of year.

Import of non-edible oils, used largely for soap making, was recorded at 31,922 tonnes in August, as compared to 64,699 tonnes during the same period last year. The overall import of non-edible oil during the first 10 months was reported at 246,052 tonnes, as compared to 347,415 tonnes during the same period last year, a decline of 29 per cent.